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4 Reasons Why you Should use a Financial Advisor to Insure your Mortgage

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However, you should know that it is absolutely not mandatory to take out this insurance with your lending institution. On the contrary, it may be wise to consult your brokerage firm. 

What is Mortgage Loan Insurance?

Mortgage insurance is a protection that will pay the balance of your mortgage to the lending institution in the event of your death.

Who Should I Turn to for Mortgage Insurance?

You can take out this insurance through your bank, which might seem like the most logical solution. However, if you take the time to analyze the different insurance policies on the market and compare the offers of the various insurers, you might discover that other types of coverage are better suited to your needs and age. For example, in certain situations, life insurance could be more advantageous than mortgage insurance.

By evaluating your personal situation, your financial advisor can propose solutions that meet your unique needs.  

If it turns out that mortgage insurance is the most appropriate protection for you, you should once again compare different products. Between the contract of your lending institution and the offer of a brokerage firm, the second one is likely to be more cost effective.

  Brokerage Firm   Lending Financial Institution
Who owns the contract? You are the policyholder The financial institution is the policyholder
Who receives the death benefit? Your heirs will receive the provided benefits Your lending institution is the primary beneficiary
Does the insurance stay in effect if you change lenders? If you change lenders over the years, your insurance remains in effect If you change banks at the time of the loan revision, your contract is automatially terminated
Is the premium guaranteed for the duration of the contract? The premium is guaranteed for the duration of the contract If you change banks, your premium will be re-evaluated based on your age, your health and your current economic situation. Your new insurance may therefore be more expensive

For these reasons, using a financial advisor could save you money and give you better coverage.

We suggest that you purchase your mortgage insurance policy after evaluating all the options available to you on the market!